Trading Recommendations for the Cryptocurrency Market on November 27

[Ben Graham]

Yesterday, Bitcoin saw a significant rise, returning to the $90,000 area. This opens the door to an update of the broader resistance around $93,000. Ethereum also returned to the $3,000 mark and is now trying to consolidate at this level.

The increase in risk appetite was fueled by the sustained strength of global stock indices, which also affected the cryptocurrency market.

However, it's important to remember that the bearish market we observed just a week ago has not gone anywhere, and the current movement should still be viewed as a pursuit of sellers'sellers' stop losses, not as the resumption of a new bullish market. The cryptocurrency market has always been characterized by high volatility, and corrections are always inevitable. Traders should exercise caution, especially when working with leverage. It is crucial to analyze situations thoroughly and not succumb to FOMO (Fear of Missing Out) to avoid potential losses.

Currently, there is an interesting picture: on one hand, institutional investors are showing increasing interest in cryptocurrencies, viewing them as an alternative asset for portfolio diversification. On the other hand, it is far from clear whether the selling from major players, which we have seen throughout the month, has ended or whether this is just a pause before another storm. I am leaning more toward the latter option.

Regarding the intraday strategy on the cryptocurrency market, I will continue to act on significant pullbacks in Bitcoin and Ethereum, anticipating the continued development of the bullish market in the medium term, which has not yet disappeared.

As for short-term trading, the strategy and conditions are described below.

Bitcoin

Buy Scenario

• Scenario #1: I plan to buy Bitcoin today when it reaches the entry point around $91,700, targeting a move to $93,300. At around $93,300, I will exit the purchases and sell immediately on the rebound. Before buying on the breakout, ensure that the 50-day moving average is below the current price and that the Awesome indicator is above zero.
• Scenario #2: Buying Bitcoin can also be considered at the lower boundary of $90,800 if there is no market reaction to its breakout back to $91,700 and $93,300.

Sell Scenario

• Scenario #1: I plan to sell Bitcoin today when it reaches the entry point around $90,800, targeting a decline to $89,400. At around $89,400, I will exit the sales and buy immediately on the rebound. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario #2: Selling Bitcoin can also be done at the upper boundary of $91,700 if there is no market reaction to its breakout back to $90,800 and $89,400.

Ethereum

Buy Scenario

• Scenario #1: I plan to buy Ethereum today when it reaches the entry point around $3,045, targeting a move to $3,103. At around $3,103, I will exit the purchases and sell immediately on the rebound. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome indicator is above zero.
• Scenario #2: Buying Ethereum can also be considered from the lower boundary of $3,012 if there is no market reaction to its breakout back to levels of $3,045 and $3,103.

Sell Scenario

• Scenario #1: I plan to sell Ethereum today when it reaches the entry point around $3,012, targeting a decline to $2,953. At around $2,953, I will exit the sales and buy immediately on the rebound. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome indicator is below zero.
• Scenario #2: Selling Ethereum can also be done from the upper boundary at $3,045 if there is no market reaction to its breakout back to $3,012 and $2,953.

The material has been provided by InstaForex Company - www.instaforex.com